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| Right time for India to acquire assets in Kazakh: Sajjanhar |
| Zafri Mudasser Nofil/ PTI / Astana Oct 02, 2009, 13:09 IST |
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The economic downturn presents significant opportunities for India to acquire assets in Kazakhstan as also to enter into joint ventures in sectors like fertilisers, infrastructure development and mining, Indian Ambassador to the Central Asian country has said.
"Till two years ago, several Western countries and companies were keen on investing in different sectors of natural resources in Kazakhstan like oil, gas and metals. The competition was very stiff and stakes were very high," Ashok Sajjanhar, Ambassador of India to Kazakhstan, said.
"Valuations of such assets have become much more realistic and affordable on account of the downturn in international prices of oil and other commodities.
Western companies have neither the money nor the inclination to invest in large-scale projects in Kazakhstan at this moment," Sajjanhar said here.
"Recent bilateral discussions during and following the visit of President Nursultan Nazarbayev to India in January have opened up several new areas and possibilities for Indian companies to engage meaningfully and effectively in Kazakhstan," he added.
Several important high value projects like renovation, modernisation and construction of coal-based power plants; setting up of factories to manufacture drugs and pharmaceuticals; export of uranium to India; investment by India in uranium mines in Kazakhstan; participation in construction of a petrochemical complex in Kazakhstan; construction of a gas-based fertiliser plant; supply of small and medium capacity nuclear reactors by India to Kazakhstan; setting up of a bauxite factory; export of coal from Kazakhstan via a 'wheeling' or swap arrangement to India etc have emerged, he said.
Sajjanhar said the Embassy would encourage Indian companies active in these fields to take advantage of this opportunity for investment in and expanding business with Kazakhstan.
"The Embassy is ready and willing to provide all necessary support and guidance to the interested companies," he said.
Kazakhstan's economy grew at a rate of 10 per cent during 2000-2007. Though growth dipped to 3 per cent in 2008 due to the international crisis, the government decided to inject $21 billion into the country's economy as part of its anti-crisis measures.
Trade turnover between India and Kazakhstan increased from $196 million in 2007 to $368 million in 2008, an increase of about 88 per cent.
Exports by Kazakhstan to India in 2008 were $164 million while New Delhi's exports to Astana amounted to $204 million in the year, registering a growth of 38 per cent.
There are several Indian companies in Kazakhstan. ONGC Videsh Limited has an office in Astana and Punjab National Bank has a representative office in Almaty.
Punj Lloyd Ltd and the RPG group KEC International Limited are engaged in infrastructure projects, oil and gas pipelines and power transmission projects.
Bharat Heavy Electricals Limited (BHEL) is also planning to open an office in Almaty. Sajjanhar said a pharmaceutical company has started work for setting up a production unit for manufacturing pharmaceutical drugs and medicines in Almaty.
There are also a large number of Indian tea companies operating in Kazakhstan.
In fact, Indian tea and medicines represent the largest components of India's export basket to Kazakhstan, he said.
According to Sajjanhar, Kazakhstan government promotes FDI friendly investment policies.
"Kazakhstan is considered to be the leading Commonwealth of Independent States (CIS) country in terms of investment friendly environment. Kazakhstan was the first CIS country that received investment rating from international rating agency Moody's in 2002 and later in 2004 from Standard & Poor's and Fitch," he said.
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